Saudi Arabian stock alert

SAARAB

CLOSING UPDATE: Saudi Reinsurance accelerates rise, now up 3.1% in 2 days 20 June 2018 16:48 AST

NEWS BITES - MIDDLE EAST & NORTH AFRICA

This is an end of day Alert, produced after today's Saudi Arabian market close. It concludes the BSS News Bites intra-day Alert series (summaries below).

Saudi Reinsurance, Saudi Arabia's 13th largest insurance company by market capitalisation, is up 27.0 hallalah (or 3.1%) over the past two trading days. After rising 0.5% on Tuesday, the stock rose 2.6% on Wednesday to trade at SAR9.02 vs. the All Share Index (TASI) that is down 0.7% in the same period.

Technical indicators complementing today's significant uptrend:

+ The positive 0.12 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ The price jumped 8.2% in the last week and 7.0% in the last month.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Undervaluation:

+ Price to Book of 0.9 [2.5]

Other Bullish Signals include:

+ Tobin's Q Ratio is 0.4. Compared with the rest of the market the stock is undervalued and ranks in the top quartile of stock by value of Q Ratio.

Note

Saudi Reinsurance today is at a discount of 10.1% to the 12-month high of SAR10.04 on 28 Dec, 2017. It is at a premium of 21.8% to the 12-month low of SAR7.41 on 09 Nov, 2017.

The stock has outperformed 55% of the Saudi Arabian market over the past 6 months.

Bearish Signals:

Net profit margin has averaged 1.3% in the last 3 years. This suggests the company is less profitable with a low margin of safety.

As per the Du Pont analysis, Return on Equity is less than stellar at 2.3%.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Overvaluation:

Price/Earnings of 38.5 [24.4]

Return on Equity 2.3% [10.1%]

Return on Assets 0.9% [2.6%]

TODAY'S ALERTS

Afternoon Alert: Saudi Reinsurance accelerates rise, now up 3.1% in 2 days

20 June 2018 14:38 AST

Saudi Re for Cooperative Reinsurance Company (TASI:8200) is up 27.0 hallalah (or 3.1%) over the past two trading days. After rising 0.5% on Tuesday, the stock rose 2.6% on Wednesday to trade at SAR9.02 vs. the All Share Index (TASI) that is down 0.6% in the same period.

Morning Alert: Saudi Reinsurance lifts 2.2% - outperforming 98% of stocks

20 June 2018 11:26 AST

Saudi Re for Cooperative Reinsurance Company (TASI:8200) has lifted 19.0 hallalah (or 2.2%) today to trade at SAR8.98 and has outperformed 98% of the market in the past week. A price rise combined with a high relative strength is a bullish signal.

Saudi Re for Cooperative Reinsurance Company (SA:8200; SAU:8200; AB:8200)

ISIN: SA1210540419

PermID: 4298031133

Source: www.BuySellSignals.com